Marketpulse Data: May 2024 U.S. Foreclosures Increase

ATTOM released its May 2024 U.S. Foreclosure Market Report, which shows there were a total of 32,621 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 3 percent from a month ago but down 7 percent from a year ago.

“May’s foreclosure activity highlights nuanced shifts in the housing market,” said Rob Barber, CEO at ATTOM. “While we observed a slight increase in foreclosure starts, the decline in completed foreclosures indicates resilience in certain areas. Monitoring these evolving patterns remains crucial to understanding the full impact on the real estate sector.”

New Jersey, Illinois and Delaware post highest foreclosure rates

Nationwide one in every 4,320 housing units had a foreclosure filing in May 2024. States with the highest foreclosure rates were New Jersey (one in every 1,939 housing units with a foreclosure filing); Illinois (one in every 2,362 housing units); Delaware (one in every 2,595 housing units); Connecticut (one in every 2,600 housing units); and Florida (one in every 2,638 housing units).

Among the 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in May 2024 were Longview, TX (one in every 1,162 housing units with a foreclosure filing); Trenton, NJ (one in every 1,471 housing units); Atlantic City, NJ (one in every 1,569 housing units); Lakeland, FL (one in every 1,584 housing units); and Bakersfield, CA (one in every 1,685 housing units).

Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in May 20244 were: Chicago, IL (one in every 2,015 housing units); Philadelphia, PA (one in every 2,143 housing units); Riverside, CA (one in every 2,216 housing units); Jacksonville, FL (one in every 2,267 housing units); and Las Vegas, NV (one in every 2,361 housing units).

Greatest numbers of foreclosure starts in Florida, Texas and California

Lenders started the foreclosure process on 22,385 U.S. properties in May 2024, up 3 percent from last month but down 4 percent from a year ago.

States that had the greatest number of foreclosure starts in May 2024 included: Florida (2,750 foreclosure starts); Texas (2,560 foreclosure starts); California (2,370 foreclosure starts); Illinois (1,427 foreclosure starts); and New Jersey (1,219 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in May 2024 included: New York, NY (1,447 foreclosure starts); Chicago, IL (1,272 foreclosure starts); Houston, TX (915 foreclosure starts); Miami, FL (750 foreclosure starts); and Philadelphia, PA (713 foreclosure starts).

Foreclosure completion numbers decrease slightly from last month

Lenders repossessed 2,879 U.S. properties through completed foreclosures (REOs) in May 2024, down 1 percent from last month and down 28 percent from last year.

States that had the greatest number of REOs in May 2024, included: California (254 REOs); Illinois (254 REOs); Pennsylvania (238 REOs); Ohio (177 REOs); and Texas (167 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in May 2024 included: Chicago, IL (179 REOs); New York, NY (124 REOs); Baltimore, MD (84 REOs); Pittsburgh, PA (80 REOs); and Washington, DC (69 REOs).